Attention on Wilson's Disease as Competitors Disappear, and Success with Complex Generics Revenue Strategy

Arbormed Nears Completion of Series C Funding Amidst Competitive Market

Arbormed, a private bio venture, is nearing the final stages of its 15 billion won Series C funding round. Despite recent challenges faced by biotech ventures in securing funding, the company has successfully raised the full target amount.

The company’s focus on commercializing its core new drug pipeline and securing sustainable revenue through complex generics has attracted significant attention from the market and investors.

Series C Funding Started in February, New Participants Include Korean Investment & Partners Investment

Arbormed plans to complete the remaining payment for its Series C funding by the end of next month. The official funding process began in February, with some investors already initiating the capital call process.

The Series C funding round, which began in February, was carried out at the same valuation as initially set, and the funding was completed without valuation adjustments through the second payment process. The pre-funding valuation of Abomed is estimated to be around 55 billion won.

The company is completing the investment round with a "multi-closing" approach, where initial investors commit first and subsequent investors join under the same terms within a specified timeframe. This method is typically chosen by biotech firms confident in their ability to reach their funding goals.

Multi-closing requires maintaining valuation and key conditions according to earlier term sheets, which can lead to legal reprocessing if the funding period extends beyond the planned timeframe. The approach becomes less common in a deteriorating investment market.

Arbormed’s Series C round has seen participation from existing financial investors, including Korea Development Bank and SBI Investment, as well as new financial institutions. Lead underwriters like Korean Investment & Partners Investment and Laplace Partners have supported the successful progression of the funding.

Licensing Interest for Rare Disease Drug and Complex Generics as Revenue Source

Founded in 2017 by Park Kyo-jin, the co-founder of MedCI, a new drug licensing consulting firm, Arbormed is gaining attention for its core pipeline, ARBM-101, targeting Wilson’s disease. CEO Park’s background includes consulting on over 30 global new drug technology transfers. The development progress of ARBM-101 has helped attract investors.

ARBM-101 targets Wilson’s disease, a rare disorder caused by genetic abnormalities that prevent the body from excreting excess copper. With no fundamental cure available, ARBM-101 aims for a First-in-Class status in its category.

The development of Wilson’s disease drugs has faced challenges in the global stage, with Pfizer and AstraZeneca failing in later clinical stages. Arbormed's drug is set to enter multinational Phase 1 trials and was selected for the National New Drug Development Project (KDDF) last year. Recent communications have also begun with global companies regarding commercialization.

In addition to new drug development, Arbormed is also focusing on complex generics, which are challenging to manufacture and develop, resulting in a limited number of generic products. This limited competition is expected to ensure profitability.

The company’s most imminent market entry is expected to be a general anesthetic adjunct from Korean firm Penmix, currently under CTD review, with a goal to apply for approval in Q1 next year. They also plan to apply for approval for a severe osteoporosis injection from Indian firm Etico Life Sciences in Q2 next year.

Arbormed representative stated, “We plan to apply for approval for both products next year and aim to start sales as early as the second half of the year after receiving FDA approval. We are committed to establishing an independent revenue model through continuous pipeline expansion.”

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